Dear
Trader…
The 30-share BSE benchmark Sensex advanced 1292.9 points or
1.62% to settle at 81,332.7. The broader NSE Nifty Future gained 460 points or 1.88%
to end at 24,915.
Information technology stocks surged by up to 6%, led by
Mphasis, Wipro, and HCL Technologies, following Thursday’s data that showed the
U.S. economy grew faster than expected in the second quarter.
IT companies earn a major share of their revenue from the
U.S. and data showing improvement in the U.S. economic growth augurs well for
the sector.
Nifty Metal rose 3%, led by Vedanta, Jindal Steel, &
Power, and NMDC. The index was the top sectoral gainer by percentage.
Meanwhile, Nifty Auto, Financial Services, Media, PSU Bank,
Realty, Pharma, Healthcare, and Consumer Durables also closed 1-2.5% higher. In
the broader market, Nifty Midcap100 closed 1.8% higher, while Nifty Smallcap100
ended 1% higher.
Among Sensex stocks, Infosys, Bharti Airtel, ITC, and
Reliance Industries contributed over 500 points to the index’s rally. ICICI
Bank, M&M, TCS, L&T, SBI and Kotak Mahindra Bank were also significant
contributors.
Investors await the U.S. personal consumption expenditures
data – the Federal Reserve’s preferred gauge of inflation – due after the
closing bell, to confirm bets of a rate cut in September.
Global
Market Check –
Europe’s continent-wide STOXX 600 index rose 0.55% and was on
track to end the week 0.3% higher after losing 2.7% last week.
Futures for the S&P 500 were up 0.74%, after the index
fell for a third day on Thursday to mark a 1.9% drop for the week to date.
Futures for the tech-laden U.S. Nasdaq index – which has
slumped 7% over the past two weeks – were 0.96% higher. Japan’s Nikkei fell
0.53%, while Hong Kong’s Hang Seng rose 0.1%.
Oil
Decline – Oil prices declined on Friday, pressured by muted
demand in China and expectations of a Gaza ceasefire deal that could ease
Middle East tensions and accompanying supply concerns. Brent crude futures for
September dipped 32 cent to $82.05 a barrel. U.S. West Texas Intermediate crude
for September fell 27 cents to $78.01.
Nifty futures opened at 24475 points against the previous
close of 24455 and opened at a low 24415 points. Nifty Future closed with an
average movement of 524 points and a decline of around 460 points and closed 24915
points…!!
Rupee
at Record Low – The Indian rupee closed at an all-time low on
Friday, pressured by strong dollar demand from local oil companies, likely
related to month-end payments. The rupee closed at 83.7275 against the U.S.
dollar, compared to its previous close of 83.6975.
Meanwhile,
The domestic market experienced a substantial
rebound on the start of the next month expiry, recovering from the recent
losses incurred following the Union budget. This upturn was driven by positive
reactions to the better-than-expected US GDP, which augurs well for global
demand. Investors are adopting buy on dip strategy, refocusing on quarterly
earnings and stock-specific trends.
Technically, the
important key resistances are placed in Nifty future are at 24915 levels, which
could offer for the market on the higher side. Sustainability above this zone
would signal opens the door for a directional up move with immediate
resistances seen at 24979 – 25088 levels. Immediate support is placed at 24808 –
24676 levels.
Past Performance is not an Indicator of Future Returns. The
securities quoted are for illustration only and are not recommendatory. Investment
in securities market are subject to market risks. Read Disclaimer and related
all the documents carefully before investing, mentioned on www.nikhilbhatt.in
